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Domain Stocks Pummeled

Domain name related companies get pummeled on Wall Street.


Google’s 52 week stock performance
(from Yahoo.com)

The stock market is in a free fall, and domain stocks are no exception.

Shares of Marchex (NASDAQ: MCHX) dropped 12.5% yesterday to close at $8.28. At one point it dropped to $7.75. It’s down 27.5% since the beginning of September.

Tucows (AMEX: TCX) shares continue to drop, and closed at just $.35 yesterday. The stock has been as high as $1.00 over the past 52 weeks.

Shares of Live Current Media (OTC: LIVC.ob) are a staggering 71% off their 52 week high. They closed Monday at only $1.12.

A share of Dark Blue Sea (DBS.AX), parent company of Fabulous, can be yours for a shiny quarter. Ouch.

At Sedo’s parent company Adlink, the stock value has been cut by 2/3rds from its 52 week high. Part of that is thanks to changes at Google for domain parking, which caused the company to cut its growth forecast from 20% to 10% for FY 2008. I suspect it will also see sales commission declines.

Even profitable companies like Google have been slaughtered.

So does this present a buying opportunity? Part of the reason stocks like Live Current Media have been hammered is because they’re highly speculative. It’s an unprofitable company making big bets on future earnings. It will likely need to raise more money and now is not the time to do that.

Right now people like few stocks, but the ones they like have earnings and sell consumer staples.

[Disclaimer: I own shares in some of the mentioned companies.]

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  1. Elliot says

    I don’t think domain investors should buy stock in domain-related companies. If the industry does well, we should make money on our domain assets. If it doesn’t, we will lose in our domain investments and investment portfolio.

  2. jp says

    I’m on board with Elliot. Why buy domains indirectly when you can just own them outright. There are some good sales in the domain market now just like on the stock market. If you really want to share your earnings with someone else why not find a parter to go in with you on some good domains. Also, if you are looking to diversify your risk, investing in domain stocks is probably not the way to do it if you are a domainer.

  3. Uragon says

    I don’t believe that purchasing domain stocks is like purchasing REIT stock.

    The true value of a domain name no matter what is done or said it the value that individual that is purchasing that domain places on that domain name.

    When an individual purchase a domain company’s stock he/she is not purchasing the domain portfolio. The individual is investing (funding) in the management of that company. It is prudent of management of the domain company to build its’ domain portfolio which in turn would help it value and make its’ investors happy with a dividend payout, stock split or increase in profit which in turn increase the value of the stock and company so that individuals and organization will pay attention and purchase its’ stock.

    To the point…if there is a domain company with a strong management team in place and the numbers ratios are strong – now or tomorrow depending on the market is the time to purchase their stock.

    On the other hand if you want to purchase domain portfolio now is the time to do what jp suggested above by building a team or investment club to purchase domain value domain names for your own portfolio as a domainer.

    Remember big dogs, wolves and shark do run in packs.

  4. Joana says

    I have lost 80% of my investment with Dark Blue Sea. I wish I looked at their portfolio first before I went for a swim and drowned.

    I also note MARCHEX is still cybersquatting and apparently may have a Billion lawsuit coming from The Order Of Malta for its cybersquatting on their trademarked name orderofmalta.com.

    After 900 years in business I dont think MARCHEX can defend their registration and monetisation of orderofmalta.com.

    FYI official website is orderofmalta.org

    I think Marchex will destruct when they face the lawyers from Order of Malta. Some are ex presidents and leader of most of the world’s largest companies

  5. Thomas says

    I agree with Joana. I did some research also on the cybersquatters from MARCHEX.

    Who are they kidding registering http://www.orderofmalta.com and pretending they have any rights to this 900 year old registered humanitarian Organisation.

    MARCHEX should be exposed for what they are. CYBERSQUATTERS

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